The dollar is stronger in a movement towards safe havens amid ongoing fears of stimulus pullback and delta variant risk. Greenback outperforms peers ahead of ECB, and Bank of Canada rate decisions this week and as global investors take risk off the table as global growth outlook appears to slow.
September 8, 2021
EUR/USD 1.1812 GBP/USD 1.3755 USD/CAD 1.2674 AUD/USD 0.7372 USD/JPY 110.27 USD/CNH 6.4599 USD/ILS 3.2042 USD/MXN 19.9137 USD/CHF 0.9220 USD/INR 73.6037 USD/BRL 5.2204 USD/SGD 1.3460 USD/DKK 6.2947 USD/SEK 8.6080 USD/NOK 8.6937
Thin trading and a flight to safe havens sent the greenback to one-week highs. Pres. Biden will reveal a 6-pronged strategy to combat the latest wave of coronavirus today as 75% of US adults have received at least 1 dose of a vaccine.GBP
The pound is weaker for a third day versus both the dollar and euro. BoE Governor Andrew Bailey’s comments will be in focus today as he speaks in front of the Treasury Select Committee.EUR
The euro slid again for a third day in fix-related flows ahead of Thursday’s ECB meeting. Nearby support is the 55DMA of 1.1813. The ECB is expected to conduct a small tapering of asset purchases this week.CAD
Broad US strength sends USD/CAD higher. Markets will listen to BoC comments following the rate decision due out this morning. A reduction in asset purchases is expected by end of year.ASIA/PACIFIC
USD/JPY pulled back slightly amid yen buying and in a flight to havens. Asian markets are concerned about economic impacts of the delta variant and possible future lock-downs.
For more analysis on FX markets or information regarding SVB's FX services:
See all of SVB's latest FX information and commentary at www.svb.com/trends-insights/foreign-exchange-advisory
By providing your email address and clicking on the Subscribe button below, you consent to receive emails from Silicon Valley Bank for your chosen categories. You also consent to the terms of our Privacy Notice. If you have privacy questions, you may contact us at PrivacyOffice@svb.com. You can withdraw your consent at any time.
Thank you for subscribing to SVB's Daily FX Update.
You're almost done. Please check your email box and follow the instructions to confirm your subscription. If you did not receive an email please check your Spam or Bulk E-Mail folder just in case the confirmation email got delivered there instead of your inbox. If so, select the confirmation message and mark it Not Spam, which should allow future messages to get through. Please add us to your trusted list of senders, contacts or address book.
Please note that we will continue to send you communications that we need to send you (for example, to keep you updated on operational changes to your account, a product or a service) or that we are required to send you by law.
This article is intended for U.S. audiences only.
©2022 SVB Financial Group. All rights reserved. Silicon Valley Bank is a member of the FDIC and the Federal Reserve System. Silicon Valley Bank is the California bank subsidiary of SVB Financial Group (Nasdaq: SIVB). SVB, SVB FINANCIAL GROUP, SILICON VALLEY BANK, MAKE NEXT HAPPEN NOW and the chevron device are trademarks of SVB Financial Group, used under license.
The views expressed in this email are solely those of the author and do not reflect the views of SVB Financial Group, or Silicon Valley Bank, or any of its affiliates. This material, including without limitation the statistical information herein, is provided for informational purposes only. The material is based in part upon information from third-party sources that we believe to be reliable, but which has not been independently verified by us and, as such, we do not represent that the information is accurate or complete. The information should not be viewed as tax, investment, legal or other advice nor is it to be relied on in making an investment or other decisions. You should obtain relevant and specific professional advice before making any investment decision. Nothing relating to the material should be construed as a solicitation or offer, or recommendation, to acquire or dispose of any investment or to engage in any other transaction.
Foreign exchange transactions can be highly risky, and losses may occur in short periods of time if there is an adverse movement of exchange rates. Exchange rates can be highly volatile and are impacted by numerous economic, political and social factors, as well as supply and demand and governmental intervention, control and adjustments. Investments in financial instruments carry significant risk, including the possible loss of the principal amount invested. Before entering any foreign exchange transaction, you should obtain advice from your own tax, financial, legal, accounting and other advisors, and only make investment decisions on the basis of your own objectives, experience and resources.